Two regulations governing the implementation of the Maldives’ Insurance Act have come into force.

Central bank, Maldives Monetary Authority (MMA) published the regulations on 27 August. They are the Regulation on Risks in the Maldives and the General Regulation on Insurance.

The Regulation on Risks in the Maldives sets out exemptions from the requirement to obtain insurance coverage from a licensed insurance company operating in the country. It also specifies the circumstances in which the MMA may grant an exemption.

The regulation establishes procedures for obtaining and negotiating insurance coverage from a person or entity that is not a licensed insurance company for risks arising in Maldives.

It covers five categories of risk, including risks to immovable and movable property, including land, within the Maldives; risks relating to residents; risks relating to property and liabilities in the Maldives; and risks relating to businesses registered under Maldivian law.

The General Regulation on Insurance sets out the areas in which persons authorised under the law may conduct insurance business in the Maldives. It also establishes criteria and application requirements for insurance broker licences.

The regulation further sets out conditions for granting licences, licensing branches and subsidiaries of insurance companies, security deposits required from insurers and procedures for establishing insurance funds.

Under the regulation, every insurance company operating in the Maldives must maintain a security deposit of MVR2 million.

The MMA opened both regulations for public consultation on 14 August.